TY - JOUR
T1 - A global study of climate uncertainty and carbon assurance
AU - Luo, Le
AU - Zhang, Junru
N1 - Publisher Copyright:
© 2024
PY - 2025
Y1 - 2025
N2 - Measurement, verification, and reporting of carbon emissions is essential for climate management. However, research on carbon assurance is limited. To address this gap, we investigate the association between climate uncertainty and voluntary carbon assurance. We conceptualize and operationalize four dimensions of micro-level climate uncertainty: innovation, management and performance, supply chain, and managerial perception uncertainty. We find that all four proxies of climate uncertainty are positively associated with the adoption of voluntary carbon assurance and the positive associations are moderated by a country-level environmental, social, and governance reporting mandate and the industry. Finally, we document that voluntary carbon assurance impacts the valuation of certain dimensions of climate uncertainty. Overall, our study is among the first to document empirical evidence of the nature, characteristics, and dimensions of climate uncertainty and its impact on firms’ carbon assurance. The knowledge will help companies strengthen their capacity to manage the green transition toward carbon neutrality.
AB - Measurement, verification, and reporting of carbon emissions is essential for climate management. However, research on carbon assurance is limited. To address this gap, we investigate the association between climate uncertainty and voluntary carbon assurance. We conceptualize and operationalize four dimensions of micro-level climate uncertainty: innovation, management and performance, supply chain, and managerial perception uncertainty. We find that all four proxies of climate uncertainty are positively associated with the adoption of voluntary carbon assurance and the positive associations are moderated by a country-level environmental, social, and governance reporting mandate and the industry. Finally, we document that voluntary carbon assurance impacts the valuation of certain dimensions of climate uncertainty. Overall, our study is among the first to document empirical evidence of the nature, characteristics, and dimensions of climate uncertainty and its impact on firms’ carbon assurance. The knowledge will help companies strengthen their capacity to manage the green transition toward carbon neutrality.
KW - Carbon assurance
KW - CDP
KW - Climate policy
KW - Climate uncertainty
KW - Firm value
KW - Innovation
KW - International
KW - Management and performance
KW - Managerial perception
KW - Supply chain
UR - http://www.scopus.com/inward/record.url?scp=85196365814&partnerID=8YFLogxK
U2 - 10.1016/j.bar.2024.101425
DO - 10.1016/j.bar.2024.101425
M3 - Article
AN - SCOPUS:85196365814
SN - 0890-8389
JO - British Accounting Review
JF - British Accounting Review
M1 - 101425
ER -